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troutman · 10-26-2016, 12:58 PM

http://www.bloomberg.com/news/articl...-startup-loans

Bankers know that food and restaurant loans have high rates of default. And you’ll probably invest heavily in inventory and equipment—items that lose value quickly and are tough for lenders to resell in the event that your startup goes under and you can’t pay back what you owe.

So, how do startup companies like yours open their doors? Surveys show that almost all—about 80 percent—rely partly or completely on the founder’s savings. Close to one-third of startups get money from friends and family or charge startup expenses to credit cards. About 20 percent get funding by bringing in a business partner.

Of the 40 percent or so that do get bank loans, most are backed by personal guarantees and personal property, such as equity in a home.

10-26-2016, 12:58 PM	#439
troutman Unfrozen Caveman Lawyer Join Date: Oct 2002 Location: Crowsnest Pass Exp:	http://www.bloomberg.com/news/articl...-startup-loans Bankers know that food and restaurant loans have high rates of default. And you’ll probably invest heavily in inventory and equipment—items that lose value quickly and are tough for lenders to resell in the event that your startup goes under and you can’t pay back what you owe. So, how do startup companies like yours open their doors? Surveys show that almost all—about 80 percent—rely partly or completely on the founder’s savings. Close to one-third of startups get money from friends and family or charge startup expenses to credit cards. About 20 percent get funding by bringing in a business partner. Of the 40 percent or so that do get bank loans, most are backed by personal guarantees and personal property, such as equity in a home.